BTDStocks.com Friday, March 4, 2011 End-of-Day Update

Stocks overlooked decent economic data today to finish lower. The selling could have been worse but late in the session stocks were able to come off their lows. Market breadth was negative but participation did not give an indication investors were selling shares heavily. Staying with the trend we are lowering the support/resistance levels on the DJIA (NYSEARCA:DIA) and S&P 500 (NYSEARCA:SPY) (see below). For the Nasdaq Composite (QQQQ) we are actually raising its support level slightly but lowering its resistance level (see below). Oil was higher again today. It seems like many market pundits are trying to justify saying that the consumer can handle oil prices at these levels. But common sense tells us that at some point consumers will smarten up and put their pocket book away which may hurt economic growth. So far the S&P 500 is up about 5% for the year with energy shares leading the way up 15%. What is more interesting is most of the other sectors are underperforming the S&P 500 so far this year. It has been all energy so far in 2011. Not an ideal scenario for a strong market. Overall, defense is the smart move right now while protecting profits and holding losses small based on the stock market direction. If you need to own stocks, please see our watch list below. In our watch list today we added a fourth position intra-day in the PowerShares Double US Dollar Index Bullish Fund (symbol: UUP) at $21.94 and the ProShares UltraShort Euro (symbol: EUO) at $18.38.